Bitcoin Q&A: Price premiums and arbitrage
How do we handle geographical arbitrage? Demonetisation and bitcoin price premiums in India. Arbitrage is the process of diminishing the difference in price in open markets. If differences in price emerge, they can be exploited for profit until the difference goes to zero. The problem is not bitcoin, the problem is currency controls. Bitcoin has no location as a global network, it was "in the US" to start with or "in India" to end with. What arbitrage activity tells you is not that bitcoin is worth $1200 here, but that rupees are discounted 20% against hard assets, including other national currencies.The market is sending you a signal. A currency that cannot move across borders is worth less. This is part of a talk which took place at the JW Marriott Sahar (International Airport) on March 26th 2017 in Mumbai, India: http://ift.tt/2na4KqF RELATED: Aadhaar and blockchain identities - https://youtu.be/GylSvJf53zI Remittances & smuggling in Venezuela - https://youtu.be/RRXecXfWARw Divisibility and deflationary monetary policy - https://youtu.be/xhLgxX_wU6E Who determines the value of bitcoins? - https://youtu.be/DucvYCX1CVI Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and well-respected figures in bitcoin. Follow on Twitter: @aantonop https://twitter.com/aantonop Website: http://ift.tt/1lek8e4 He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters. THE INTERNET OF MONEY, v1: http://ift.tt/2o8HU2S MASTERING BITCOIN: http://ift.tt/2g7r3G5 [NEW] MASTERING BITCOIN, 2nd Edition: http://ift.tt/2qUfKqY Subscribe to the channel to learn more about Bitcoin & open blockchains! Videography: Zebpay Bitcoin India Music: "Unbounded" by Orfan (http://ift.tt/2o8tuA5) Outro Graphics: Phneep (http://www.phneep.com/) Outro Art: Rock Barcellos (http://ift.tt/1HKZSHT)
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